2 Strategic ManagementExternal Anal

2 Strategic Management
External Analysis of Competitive Environment
An external analysis of the farm’s competitive environment includes understanding the forces operating within both the general economy and the industry in which the farm belongs (e.g., dairy or corn). External analysis evaluates the environment in which the farm operates, that is, outside of the farm itself. The process of external analysis can be seen as answering eight questions (fig. 2.2).